Growers hope rates to stabilise after TCP's move

Prices stabilised slightly on the cotton market on Thursday as the Trading Corporation of Pakistan (TCP) started purchasing from the ginners, dealers said. The official spot rate maintained overnight level at Rs 4,800, they added. In the ready session, over 23,000 bales of cotton changed hands between Rs 4675-5100, they said. In Sindh, rates were unchanged at Rs 1600 and Rs 2450, in Punjab prices firmly held the overnight levels at Rs 2100 and Rs 2650, they said.

According to the market sources, expectations were rising among the growers about rise in the prices of cotton, oilcake prices showing gradual improvement, which is a good sign for the traders. Cotton analyst, Naseem Usman said that TCP purchasing, the phutti prices also went up modestly and we expect prices and trading activity to go up as rates were picking up in the international market.

Reuters adds: Cotton futures rallied on Wednesday, soaring above psychological resistance at 60 cents a lb on short-covering ahead of the US Thanksgiving Day holiday on Thursday. The most-active March contract on ICE Futures US closed up 0.72 cent, or 1.2 percent, at 60.03 cents a lb after jumping as high as 60.55 cents. Trading volumes picked up as buy-stops exaggerated the day's gains, but activity remained below average ahead of the holiday, when cotton trading on ICE will be closed.